Gartner reports startups growth has potential

by Nicholas Mokhoff , TechOnline India - July 14, 2011

Wireless connectivity, analog functions and optical technologies are among the most commonly offered products from semiconductor startups and small private companies which attracted over $1.3 billion dollars in funding during the past two years.

Wireless connectivity, analog functions and optical technologies are among the most commonly offered products from semiconductor startups and small private companies which attracted over $1.3 billion dollars in funding during the past two years.

In the recent Gartner report, the numbers of startups have fallen significantly in comparison with the earlier years of the decade but many opportunities remain.

Market Insight: Private Semiconductor Vendors and Startups, 2011, provides a listing of private semiconductor companies and their offerings, together with details of funding activities.

The report has the following key findings:

* The rate of startups per year is slowing down with very few companies formed in the past three years, which contrasts sharply with activities earlier in the decade.

* Most of the private companies identified are in the post-startup stage and are funded from ongoing business operations. 

* One third of investments were from larger vendors rather than venture capital companies. Gartner researchers assume this represents investments in strategic technologies of interest to the larger company.

* Investment sums ranged up to $74 million and averaged $12.4 million per company.VC firms continue to favor later-stage companies, when they consider funding new prospects.

The  report is available to Gartner subscribers for a fee.

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